GSA Awards $3,067 for Multi-Use Aerosol Penetrating Fluid with 20-Day Delivery

Contract Overview

Contract Amount: $3,068 ($3.1K)

Contractor: Rite-Kem, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-23

Contract Duration: 20 days

Daily Burn Rate: $153/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: PENETRATING FLUID, MULTI-USE AEROSOL PENETRATINGFLUID. LIQUID SOLVENT FOR USE IN UNFREEZING OF CORRODED OR RUSTED PARTS, NUTS, SCREWS AND HINGES WITHOUT CAUSING DAMAGE. USE ON COLD OR HOT SURFACES. NON-TOXIC. AERSOL FORM. MAXIUM SHELF LIFE 3 MONTHS.

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38801

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $3,067.5 to RITE-KEM, INC. for work described as: PENETRATING FLUID, MULTI-USE AEROSOL PENETRATINGFLUID. LIQUID SOLVENT FOR USE IN UNFREEZING OF CORRODED OR RUSTED PARTS, NUTS, SCREWS AND HINGES WITHOUT CAUSING DAMAGE. USE ON COLD OR HOT SURFACES. NON-TOXIC. AERSOL FORM. MAXIUM SHELF LIFE 3 MONTHS. Key points: 1. Product is a non-toxic, aerosolized liquid solvent for unfreezing rusted parts. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to short shelf life (3 months) and fixed price with economic adjustment. 4. Sector is Soap and Other Detergent Manufacturing, with a PSC code not specified.

Value Assessment

Rating: fair

The fixed price with economic price adjustment (FPEPA) contract type introduces some uncertainty in final pricing. Benchmarking against similar contracts for specialized aerosol solvents is difficult without more specific product details and volume.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing, though the specific impact here is unknown without bid data.

Taxpayer Impact: The taxpayer impact is likely minimized due to the competitive bidding process, but the economic price adjustment clause could lead to higher costs if raw material prices increase.

Public Impact

Ensures availability of a critical maintenance product for federal agencies. Supports operational readiness by providing a solution for rusted or corroded parts. The short shelf life may lead to waste if not managed efficiently by the agency.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Short shelf life (3 months) may lead to product expiration and waste.
Economic price adjustment clause can increase final cost beyond initial estimates.
Lack of specific PSC code makes sector benchmarking difficult.

Positive Signals

Full and open competition promotes competitive pricing.
Product is non-toxic and safe for use on various surfaces.
Aerosol form offers convenient application.

Sector Analysis

The procurement falls under the Soap and Other Detergent Manufacturing sector. Benchmarking spending in this specific niche of aerosolized industrial solvents is challenging without a more granular product classification or Public Service Code (PSC).

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses were excluded from the bidding process or simply did not win the award.

Oversight & Accountability

The General Services Administration (GSA) through its Federal Acquisition Service (FAS) is responsible for this contract. Oversight would involve monitoring contract performance, delivery schedules, and adherence to pricing terms, especially with the economic price adjustment.

Related Government Programs

Soap and Other Detergent Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Short shelf life may lead to product expiration and waste.
Economic price adjustment introduces cost uncertainty.
Lack of specific PSC code hinders sector benchmarking.
Small business participation is not indicated.
Limited contract duration (20 days) may not reflect long-term needs.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,067.5 to RITE-KEM, INC.. PENETRATING FLUID, MULTI-USE AEROSOL PENETRATINGFLUID. LIQUID SOLVENT FOR USE IN UNFREEZING OF CORRODED OR RUSTED PARTS, NUTS, SCREWS AND HINGES WITHOUT CAUSING DAMAGE. USE ON COLD OR HOT SURFACES. NON-TOXIC. AERSOL FORM. MAXIUM SHELF LIFE 3 MONTHS.

Who is the contractor on this award?

The obligated recipient is RITE-KEM, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $3,067.5.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-23.

What is the estimated annual demand for this specific penetrating fluid across all federal agencies to assess the overall value?

Without data on the quantity ordered (999 units) relative to the contract duration (20 days) and the potential for future orders, it's difficult to estimate annual demand. A more comprehensive analysis would require historical ordering data or agency-specific usage projections to determine if this is a recurring need or a one-time purchase.

What are the specific economic factors that could trigger price adjustments under the FPEPA clause, and what is the potential cost escalation?

The specific economic factors triggering price adjustments are not detailed in the provided data. Typically, these relate to fluctuations in the cost of raw materials, labor, or transportation. The potential cost escalation depends on the index or formula defined in the contract's economic price adjustment clause, which could significantly increase the final price if market conditions are volatile.

How effectively does the GSA ensure that the short 3-month shelf life does not lead to significant product waste and taxpayer loss?

Effective management of the 3-month shelf life relies on precise demand forecasting and just-in-time delivery by the vendor, as well as efficient inventory management by the receiving agency. GSA's oversight would likely involve monitoring delivery lead times and potentially requiring vendors to provide proof of shelf life at the time of delivery to mitigate waste.

Industry Classification

NAICS: Manufacturing › Soap, Cleaning Compound, and Toilet Preparation Manufacturing › Soap and Other Detergent Manufacturing

Product/Service Code: TOILETRIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QSMD20R0001

Offers Received: 999

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 703 WESTMORELAND DR, TUPELO, MS, 38801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,068

Exercised Options: $3,068

Current Obligation: $3,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D005X

IDV Type: FSS

Timeline